South Carolina General Assembly

120th Session, 2013-2014

A220, R228, S1033

STATUS INFORMATION

General Bill

Sponsors: Senators Campbell, Leatherman, Setzler, O'Dell and Alexander

Document Path: l:\s-res\pgc\016emer.hm.pgc.docx

Introduced in the Senate on February 19, 2014

Introduced in the House on March 20, 2014

Last Amended on March 13, 2014

Passed by the General Assembly on May 28, 2014

Governor's Action: June 2, 2014, Signed

Summary: Out-of-state businesses

HISTORY OF LEGISLATIVE ACTIONS

DateBodyAction Description with journal page number

2/19/2014SenateIntroduced and read first time (Senate Journalpage7)

2/19/2014SenateReferred to Committee on Finance(Senate Journalpage7)

3/5/2014SenateCommittee report: Favorable Finance(Senate Journalpage22)

3/6/2014Scrivener's error corrected

3/13/2014SenateAmended (Senate Journalpage16)

3/13/2014SenateRead second time (Senate Journalpage16)

3/13/2014SenateRoll call Ayes40 Nays3 (Senate Journalpage16)

3/19/2014SenateRead third time and sent to House (Senate Journalpage21)

3/20/2014HouseIntroduced and read first time (House Journalpage18)

3/20/2014HouseReferred to Committee on Ways and Means(House Journalpage18)

5/15/2014HouseCommittee report: Favorable Ways and Means(House Journalpage43)

5/22/2014HouseDebate adjourned until Tues., 52714 (House Journalpage51)

5/27/2014HouseRead second time (House Journalpage46)

5/27/2014HouseRoll call Yeas102 Nays0 (House Journalpage47)

5/28/2014HouseRead third time and enrolled (House Journalpage10)

5/29/2014Ratified R 228

6/2/2014Signed By Governor

6/11/2014Effective date 06/02/14

6/12/2014Act No.220

VERSIONS OF THIS BILL

2/19/2014

3/5/2014

3/6/2014

3/13/2014

5/15/2014

(A220, R228, S1033)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 122110 SO AS TO PROVIDE THAT AN OUTOFSTATE BUSINESS OR EMPLOYEE THAT PERFORMS DISASTER OR EMERGENCYRELATED WORK IN THIS STATE IS EXEMPT FROM CERTAIN LICENSING AND TAXING PROVISIONS DURING THE DISASTER PERIOD, TO DEFINE TERMS, AND TO PROVIDE NOTICE REQUIREMENTS.

Be it enacted by the General Assembly of the State of South Carolina:

Outofstate business performing disaster or emergencyrelated work exempt from certain licensing and taxing requirements

SECTION1.Chapter 2, Title 12 of the 1976 Code is amended by adding:

“Section 122110.(A)For purposes of this section:

(1)‘Registered business in this State’ or ‘registered business’ means a business entity that is registered to do business in this State before the declared state disaster or emergency.

(2)‘Outofstate business’ means a business entity that has no presence in the State and conducts no business in this State whose services are requested by a registered business or by a state or local government for purposes of performing disaster or emergencyrelated work in this State. This term includes a business entity that is affiliated with the registered business in this State solely through common ownership. The outofstate business must have no registrations or tax filings or nexus in the State before the declared state disaster or emergency.

(3)‘Outofstate employee’ means an employee who does not reside in or work in the State, except for disaster or emergencyrelated work during the disaster period.

(4)‘Infrastructure’ means property and equipment owned or used by communications networks, electric generation, transmission and distribution systems, gas distribution systems, water pipelines, and public roads and bridges and related support facilities that services multiple customers or citizens including, but not limited to, real and personal property such as buildings, offices, lines, poles, pipes, structures, and equipment.

(5)‘Declared state disaster or emergency’ means a disaster or emergency event:

(a)for which a Governor’s state of emergency proclamation has been issued;

(b)for which a presidential declaration of a federal major disaster or emergency has been issued; or

(c)other disaster or emergency event within this State for which a good faith response effort is required, and for which the Director of the South Carolina Department of Revenue designates the event as a disaster or emergency and thereby invokes this section.

(6)‘Disaster period’ means a period that begins within ten days of the first day of the Governor’s proclamation, the President’s declaration, or designation by the Director of the Department of Revenue, whichever occurs first, and that extends for a period of sixty calendar days after the end of the declared state disaster or emergency period, or any longer period authorized by the designated state official or agency.

(7)‘Disaster or emergencyrelated work’ means repairing, renovating, installing, building, rendering services or other business activities that relate to infrastructure that has been damaged, impaired, or destroyed by the event precipitating the declared state disaster or emergency.

(B)(1)(a)An outofstate business that performs disaster or emergencyrelated work within this State related to a declared state disaster or emergency during a disaster period must not be considered to have established a level of presence that would require that business to register, file, and remit state or local taxes or that would require that business or its outofstate employees to be subject to any state licensing or registration requirements or any combination of these actions. Except as provided in subsection (B)(1)(b), this exemption includes all state or local business licensing or registration requirements or state and local taxes or fees including, but not limited to, unemployment insurance, state or local occupational licensing fees, sales and use tax, or property tax on equipment used or consumed during the disaster period, and includes South Carolina Public Service Commission and Secretary of State licensing and regulatory requirements. For purposes of a state or local tax on or measured by, in whole or in part, net or gross income or receipts, all activity of the outofstate business resulting from its performance of disaster or emergencyrelated work within this State related to a declared state disaster or emergency during a disaster period, must be disregarded with respect to any filing requirements for that tax including the filing required for a unitary or combined group of which the outofstate business may be a part.

(b)An outofstate employee is not considered to have established residency or a presence in the State that would require that person or that person’s employer to file and pay income taxes or to be subjected to tax withholdings or to file and pay any other state or local tax or fee resulting from his performance of disaster or emergencyrelated work within this State related to a declared state disaster or emergency during a disaster period. This includes any related state or local employer withholding and remittance obligations.

(2)Outofstate businesses and outofstate employees are not exempted by this section from transaction taxes and fees including, but not limited to, fuel taxes and fuel user fees or sales and use taxes on materials or services subject to sales and use tax, accommodations taxes, car rental taxes or fees that the outofstate affiliated business or outofstate employee purchases for use or consumption in this State during the disaster period, unless the taxes or fees are otherwise exempted during a disaster period.

(3)An outofstate business or outofstate employee that remains in the State after the disaster period becomes subject to the state’s normal standards for establishing presence, residency, or doing business in this State and the resulting requirements.

(C)(1)(a)The outofstate business that enters this State upon request, shall provide to the Department of Revenue a notification statement that it is in this State for purposes of responding to the disaster or emergency, which statement must include the business’ name, state of domicile, principal business address, federal tax identification number, date of entry, and contact information.

(b)A registered business in this State, upon request, shall provide the information required in item (1)(a) for an affiliate that enters this State that is an outofstate business. The notification also must include contact information for the registered business in this State.

(2)An outofstate business or an outofstate employee that remains in this State after the disaster period shall notify the Department of Revenue and shall comply with state and local registration, licensing, and filing requirements that ensue as a result of establishing the requisite business presence or residency in this State.”

Time effective

SECTION2.This act takes effect upon approval by the Governor.

Ratified the 29th day of May, 2014.

Approved the 2nd day of June, 2014.

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